franchisee gets all of it, apart from a small percentage of the revenue which is paid to the franchisor on a weekly, monthly and annual basis
A public limited company might want to change to a franchise business because they want to invest in more money and gain more profits.
Franchise is less likely to fail due to the good reptuation it has and the franchise chain is always there if need of assistance.
True :)
private business
A disadvantage of a franchise is that the franchise owner must adhere to the franchisor's established rules and guidelines, limiting their ability to make independent business decisions. Additionally, franchise owners often pay ongoing royalties and fees, which can reduce overall profits. This lack of autonomy can be challenging for those seeking to implement their own vision or strategies.
A public limited company might want to change to a franchise business because they want to invest in more money and gain more profits.
Franchise is less likely to fail due to the good reptuation it has and the franchise chain is always there if need of assistance.
True :)
dividends
dividends
private business
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
A disadvantage of a franchise is that the franchise owner must adhere to the franchisor's established rules and guidelines, limiting their ability to make independent business decisions. Additionally, franchise owners often pay ongoing royalties and fees, which can reduce overall profits. This lack of autonomy can be challenging for those seeking to implement their own vision or strategies.
In a sole proprietorship, profits are directly attributed to the owner, meaning that all earnings generated by the business belong to them. The owner has the discretion to reinvest profits back into the business or withdraw them for personal use. This structure allows for simple tax treatment, as profits are typically reported on the owner's personal income tax return, avoiding double taxation. However, the owner also bears all financial risks and liabilities associated with the business.
What financial statement would you analyze to determine if a company distributed any of its profits to its shareholders?
The aims and objectives of a franchise are to spread name recognition of the company's brand and to increase profits by expanding.
The business franchise is run by a local family, but the main business started in Kentucky.